Income Tax Act 1961

--Search and Seizure--Addition On the basis of statement recorded under section 132(4)--Assessee-trust runs an engineering college. A search under section 132 was conducted in its group institutions. A special officer of this college had stated that the college collected capitation fees as donation from students admitted against management quota. AO made addition of Rs 537 lakhs towards capital fees on the basis of statement recorded under section 132(4) and as per loose sheet which contained number of management students admitted to various courses. CIT (A) observed that no such addition could be made solely on the basis of statements recorded under section 132(4) and there being no related evidence having been found during search showing receipt of such donations. Held What was found was a note giving the break-up of number of students and this document could not be said an incriminating document because this was a declared truth which was also recorded in the books of the trust. Thus, no incriminating evidence was found or seized, therefore CIT(A) was justified in deleting the addition.